To date, the predominant view in the tourism industry has been that the boom of short-term leases hits hotels. The majority of hotel groups oppose the spread of short-term leases, on the grounds that it is taking place in an uncontrolled and unregulated manner, causing damage to the country’s tourism and to businesses themselves. The figures, however, say exactly the opposite: hotels are not losing anything.
What the official figures show
According to the latest available data of the Hellenic Statistical Authority for Tourism, in the first nine months of 2018, the average daily income of hotels increased by 9% compared to the corresponding period of the previous year. A similar increase of 9% was also observed in the average income per room, with an increase of 1.2% in occupancy. At the same time in 2018 the average daily income from short-term leases decreased significantly by 17%, a decrease attributable to the large increase in the supply of apartments.
From the above figures, it is concluded that hotel chain revenues not only have not decreased but, on the contrary, are rising, despite the ever-increasing growth of short-term leases.
This is due to the fact that the short-term rentals have increased the supply of available accommodation and as a result has increased the tourist flow towards the country, attracting people who under different circumstances would not choose Greece as a destination since there is now a large selection of short-term leases with cheap prices compared to hotel rooms.
At the same time, short-term lease income recorded an average downward trend in 2018 due to increased supply. According to an AirDNA survey, a company that analyses daily all active listings at Airbnb and HomeAway, by the end of 2018, the average daily revenue in Greece for short-term leases had an annual decline of 17% to 126.4 euro.
Combined with the occupancy factor, i.e. the number of days that each property is leased, the average income recorded a further decrease of 28%, namely 58 euros, from 81 euros at the end of 2017. In more detail, of the total of 72,144 lodgings available in the country for short-term rent, fullness dropped to 46% from 52.7%.
The conclusion that emerges from the above is that the large supply of short-term rentals has fundamentally hit this market only, despite hotels that have continued their upward trend.
It is noteworthy, however, that even large hotel chains have begun to operate in the short-term leases market, recognizing the investment opportunity offered by this industry. This trend is reinforced by the argument of those who claim that the short-term lease sector will move towards more professional management, compared to today.